Oyo State Government recently conducted a sensitization program for traders and artisans, providing insights into the newly introduced tax law set for implementation.
The program, witnessed by the Oyo State Market Leaders Council, Ministry of Trade, Industry, Investment, and Cooperatives, along with the Oyo State Board of Internal Revenue, unfolded at the Conference room of the Ministry of Trade.
Honourable Ademola Ojo, the Commissioner for Trade, Industry, Investment, and Cooperatives, disclosed that the state is collaborating with a traders’ association to collect value-added tax (VAT) from informal traders, aligning with the administration’s goal to broaden the tax base in Oyo State.
Ojo highlighted the ongoing bold reform agenda, including the review of the tax law, emphasizing that Oyo state currently has one of the lowest tax collection rates.
He stated, “This year, the government intends to ensure that over 47% of our budget will come from revenues.” Furthermore, Mr. Ojo noted the state’s initiative to register artisans and traders, aiming to facilitate the tax drive from the informal sector. He emphasized the potential benefits for this group, including grants, loans, and other advantages.
The Commissioner stressed that data collation for artisans and traders would eliminate the issue of double taxation, commending the Oyo State Board of Internal Revenue for collaborating on the enactment of the new tax law.
He appreciated the compliance of artisans and traders, urging them to continue supporting government decisions for mutual benefits.
Honourable Femi Adebowale Awakan, Chairman of the Oyo State Board of Internal Revenue, provided details about the newly enacted tax law signed by Governor Seyi Makinde on December 28th, 2023.
The law targets those in the informal sector without records of sales, grouping them under the presumptive tax law. Awakan highlighted the significance of the law for entrepreneurs with informal businesses.
He noted that charges for presumptive tax could range from One thousand to Five thousand naira per year, contrasting with business owners paying direct assessment tax of Ten million Naira annually.
Awakan urged traders and artisans to comply with the tax payment law, emphasizing that tax collection is crucial for better infrastructure, aligning with Governor Seyi Makinde’s vision to improve Oyo State.
Alhaji Dauda Abiodun, President of the Oyo State Market Leaders Council, expressed readiness to collaborate with the government and supported the initiative. He advised traders and artisans to comply, citing the longstanding existence of tax payment as a civic responsibility.
